Bankrupt Caesars unit reaches deal; Concordia bonds mixed; iHeart upping debt facilities

By Stephanie N. Rotondo

Seattle, Sept. 27 – After starting out the week with a softer tone, the distressed debt market was trending firm on Tuesday.

Some of those gains were due to credit-specific news, such as in Caesars Entertainment Corp. It was reported Tuesday that the company and its “major creditor groups” had reached a deal on a restructuring that would improve the recovery for second-lien noteholders of the bankrupt Caesars Entertainment Operating Co. unit.

The bonds “got some relief” on the news, a trader said.

He saw the 11¼% notes due 2017 rising almost 2 points to 104, while the 11% notes due 2021 added a deuce to close at 107 3/8.

The 9% notes due 2020 improved nearly 3 points to 104½.

Traders meantime gave mixed reviews of Concordia International Corp. Goldman Sachs issued a report Tuesday that opined a takeover of the struggling drugmaker was less likely now that the United Kingdom was looking to stem exorbitant price increases.

The picture was also mixed for iHeartCommunications Inc. The San Antonio-based multimedia company said in a regulatory filing that it was looking to increase its credit facility by $500 million.

In the coal arena, Murray Energy Corp.’s 11¼% notes due 2021 continued to gain strength, according to a trader.

He pegged the issue in a 50 to 51 zip code.

Another trader deemed the issue off a quarter-point at 50.

Peabody Energy Corp.’s 10% notes due 2022 were meantime called unchanged at 40 5/8.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.